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LONDON—Crude oil rose to a record above $143 a barrel on
speculation the dispute over Iran’s nuclear program may
disrupt supply from Opec’s second-largest producer.
Pressure on Iran to end its uranium enrichment program
and the falling value of the US dollar may drive prices
to $170 a barrel, Opec President Chakib Khelil said on
June 28. Oil is headed for its biggest six-month gain
since 1999 as investors shun equities for commodities,
looking for a hedge against a weaker dollar and
quickening inflation.
“It
is a risk Iran will take any measures to cut flows
through that important region and the market is reacting
to that,” said Andy Sommer an analyst with HSH Nordbank
in Hamburg. “There are some funds flowing from the
equities side to commodities.”
Crude
oil for August delivery rose as much as $3.46, or 2.5
percent, to $143.67 a barrel in electronic trading on
the New York Mercantile Exchange. It was at $142.67 a
barrel at 12:20 p.m. in London. Brent crude oil for
August settlement rose as much as $3.60, or 2.6 percent,
to $143.91 a barrel on London’s ICE Futures Europe
exchange, the highest since trading began in 1988. It
was at $143.06 a barrel at 12:20 a.m. London time. |
